Anyone here from Minnesota? Help

Here are the laws regrding your state (just select your state).
Thet are legal but your state has a low interest rate cap. Check with your Dept of Commerce listed belo to see if they have a long arm policy to enforce against internet lenders.
Please tell us who the PDLs are, how much you borrowed from each and how much you have paid each one of them including rollovers.

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Cashnetusa-650 paid 275 they say I owe 875 it's in defult
Payday1-500 paid 300 loan still @ 500 for payoff
Cashnetusa- 300 payed 350
purposeloans- 300 payed 312
cashcentral- 300 payed 150
Ameriloan- 250 payed nothing

I have had numerous loans with a few of these companies cause everytime I payed one off all of my other bills where and still are past due. It's loke a visious cycle I don't know how to get out of.

I forgot to log into before I replied. The guest one is my response. Thanks Introuble79

I am surprised that you have 2 loans with CashnetUSA. Most companies do not permit that. They will work with you if you explain your situation to them.

No I only have 1 with cashnetusa for 650. They claim I owe 875 because it's in default. They have been the worst to deal with this far they are threating me with calls stating I have commited fraud and I can be arrested. They have no intention of dealing with me. I've had 2 calls from Attorney Dennis Hecker stating all of this and they are going to call my references and tell them to pay the money.

Sorry that was Lawrence Hecker- I just goggled him to see if he was a real attorney- he has 3 lawsuits filed against him right now by 3 states for violating the fair debt collection practice act

introuble -

you need to be sure the lenders are not licensed to do business in your state before proceeding, but from the sounds of their threats, they probably aren't.

They cannot arrest you, charge you with fraud, send police to your door to take you away or anything of the sort for defaulting on a payday loan. And the threat to call your references and make them pay for your loan - well, they may try to call your references, but they can't make them pay your loan - they are references, not co-signers. No court in the world would honor such a threat.

I sent some emails to and from the MN banking dept. Here they are:
[quote]---------------------------------
Hello,

I have a question about internet payday loans. Do these need to be licensed in MN to be legal? Also, how do I calculate the legal amount of interest they can charge me according to MN laws? I see the laws state:

Maximum Finance Rate and Fees: $5.50: $0-$50; 10%+$5: $51-$100; 7% (min. $10) + $5: $101-$250; 6% (min. $17.50) + $5: $251-$350 (After default: 2.75% per month)
Finance Charge for 14-day $100 loan: $15
apr for 14-day $100 loan: 390%

So for a $300 loan how would I calculate the interest? And since no rollovers are allowed and the companies I have loans with have rolled them over countless times, would I be correct in saying that they are breaking the law? I've been told by several of them that they don't have to follow MN laws, even though they solicited me, because they are licensed in the state that they are located in. Is that correct?

I really appreciate any help or direction you could give me!

Thanks!

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Sent: Tuesday, March 27, 2007 6:40 AM
To:
Subject: FW: Payday loan questions

First we don????????t license lenders that are domiciled in other states. Minnesota law does not have a long arm statute and allows residents to seek loans wherever they want. Solicitations via the internet or ads do not place the lender in Minnesota, only a physical location would [the exception being residential mortgage lenders].

The way to calculate the APR for a 14 day loan is either using a T-I calculator. A fast check using the example for a $100 14 day loan is;

$15 finance charge divided by the $100 loan [proceeds of the loan, or amount financed] = .15, or 15%

.15 divided by the number of days in the loan, or 14, gives you the daily rate of .0004109589

Multiply that number by 365 [days in the year] = 3.91071428415, or 391.07% APR


Does that help ???????? and in Minnesota rollovers or refinancing is not permitted. Name the MN lender and file a complaint.

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From:
Sent: Tuesday, March 27, 2007 8:45 AM
To: Terry Meyer
Subject: FW: Payday loan questions

Terry,

So to make sure I understand this, a payday loan company located in another state doesn't have to be licensed to lend to MN consumers. But do they have to follow MN laws about rollovers and interest? Or can they follow the laws of the state in which they are located in?

Thanks for you help!

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From: Terry Meyer
Sent: Tuesday, March 27, 2007 6:58 AM
To:
Subject: RE: FW: Payday loan questions

It is similar to credit cards ???????? I would bet, assuming you are a MN resident, that none of your credit cards are from banks located in MN. The Supreme Court ruled in both 1978 that rates, and 1996 that fees could be imported for credit cards issued by out of state lenders to other states borrowers. Its agency law. The use of the laws of the state in which the lender is licensed is required.

Please explain your interest and the firm you represent.

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From:
Sent: Tuesday, March 27, 2007 9:04 AM
To: Terry Meyer
Subject: RE: FW: Payday loan questions

Terry,

I don't represent any firm. I'm trying to help a friend deal with his payday loan mess. He took 9 out over the internet a few months ago. Now they are calling him, threatening his arrest, calling his boss and telling his boss that he's about to be arrested, and just generally harassing him because he can't pay their fees and asked to set up payment arrangements. Since all the loans are over the internet he is being charged 300% to 999% for these loans. I was just trying to get some more information about the laws governing these kind of loans to see if he had anyway to fight them. The reason I was curious about the specific point of if state law governs out of state pdl's is because where I live, Oregon, they do have a law saying that out of state pdl's much be licensed in OR and follow the laws of OR. I was hoping the same thing applied to MN, because in that case all his pdl's were grossly overcharging him.

Thanks!

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From: Terry Meyer
Sent: Tuesday, March 27, 2007 7:30 AM
To:
Subject: RE: RE: FW: Payday loan questions

Good luck ???????? we recently received a complaint on a Payday loan from Malta. Each state would have to be contacted for their payday loan law to determine if a violation occurred.[/quote]